AU 420: Consistency of Application of Generally Accepted Accounting Principles
AU-C 708: Consistency of Financial Statements
AU EFFECTIVE DATE AND APPLICABILITY
|Original Pronouncements||Statements on Auditing Procedures (SAPs) 53, 43, and 88.|
|Effective Date||These statements currently are effective.|
|Applicability||Audit of financial statements in accordance with generally accepted auditing standards (GAAS).|
NOTE: The consistency standard does not apply in the audit of the financial statements of a new entity. It applies either to financial statements prepared in accordance with generally accepted accounting procedures (GAAP) or another comprehensive basis of accounting.
AU-C EFFECTIVE DATE AND SUMMARY OF CHANGES
SAS No. 122, Codification of Auditing Standards and Procedures, is effective for audits of financial statements with periods ending on or after December 15, 2012.
The clarified standard supersedes AU Section 420 (SAS No. 1, Codification of Auditing Standards and Procedures, Section 420, Consistency of Application of Generally Accepted Accounting Principles, as amended)
The clarified SAS does not change or expand existing standards in any significant respect except as follows:
- AU Section 420 states that changes and material reclassifications made in previously issued financial statements to enhance comparability with current financial statements ordinarily would not need to be referred to in the independent auditor’s report. However, the clarified SAS requires ...